PBOC sets USD/ CNY reference rate for today at 6.5416 (vs. Friday at 6.5376)

The People’s Bank of China set the onshore yuan reference rate for the trading session ahead. 

Weakest for the CNY since Dec 29 last year.

CNY has been falling again (higher USD/yuan), bringing the daily mid-rate setting back into focus. Falling Chinese equities and stabilising US yields cited as reasoning for the USD/yuan bid. 

  • The previous close was 6.5418
  • Reuters estimate from their survey was 6.5418, Bloomberg 6.5419 …. (A rate that’s significantly stronger or weaker than expected is typically considered a signal from the PBOC.)

The daily mid-rate setting is at 9:15 am Beijing time.

  • the rate is permitted to move +/- 2% from this

injects 10 billion yuan liquidity via 7-day reverse repo

  • 10 billion yuan reverse repo matures today

  • thus neutral, no net injection nor drain

  • 21st day in a row of neutral

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